This week, we’re talking about socially responsible investing, as well as it’s related cousin, ESG investing. Socially responsible and ESG investing mean a lot of different things to different people, but at it’s core, socially responsible investing is about determining your most important values, deciding if those values should dictate your investment decisions, and if so, how you can invest your money in a way that is consistent with your most important values. 

A better way to describe this concept then, is values-based investing.

Today, we need to start with understanding your values as it relates to investing.  You might value your family, a good bottle of wine, and the opportunity to go hunting now and again. But what about your values that impact your investment decisions? 

A good place to start, I think, is looking at the types of organizations where you already give money to or volunteer your time. Do you volunteer at the annual beach cleanup and give money to the American Cancer Society in honor of a loved one who died of lung cancer? In that case, you’ll likely want to invest in companies that have sound environmental practices and avoid tobacco companies.

You can put all kinds of screens on your investment portfolio to weed out the types of companies you don’t want, while actively investing your money in the types of companies that you do want. The list is long. Everything from the environment and tobacco, to abortion and human trafficking and child labor. 

The key though is to first discover and articulate your most important values. 

That’s it for today. Thanks for listening. Tomorrow, I’ll share with you the most important question I ask my clients to determine if a values-based approach to investing is the right path. 

My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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